ValiRx PLC shares fell on Friday, after it ended its evaluation agreement with Hokkaido University to research a potential drug.

ValiRx is an Essex, England-based life science company focused on early-stage cancer therapeutics and women’s health. Its shares were down 12% to 8.18 pence each in London on Friday morning.

In December 2021, ValiRx signed an evaluation agreement with Hokkaido University in Japan. This was then extended by six months a year later.

The agreement was to investigate a drug candidate for use in oncology and the action of the molecule against endometrial, pancreatic and bile duct cancers.

Under this agreement, ValiRx conducted a range of experiments following initial confirmation of the synthetic route and analysis. After overcoming initial challenges in synthesis and purification of the peptide, testing has been conducted on the product.

However, ValiRx said the profile of the product has been found to be unsuitable for further development at this stage and the evaluation will now cease.

As agreed, the data generated under the evaluation agreement will be provided to the originating academics at Hokkaido University to enable them to optimise the molecular profile.

Chief Executive Officer Suzy Dilly said: ‘Although it’s disappointing not to be able to progress this project further, this highlights the importance of our process of evaluating academic projects prior to full in-licensing. In addition to returning the data to Hokkaido, we have made recommendations for further work, and we will be following the scientific progress of project with interest.’

Copyright 2023 Alliance News Ltd. All Rights Reserved.